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Sept 16 (Reuters) – European shares staged a recovery on Wednesday after two sessions of declines as a rally in oil prices paused, lifting risk appetite ahead of the U.S. Federal Reserve’s monetary policy decision.
Read more Oil falls as US crude inventories rise despite Saudi supply concerns
The pan-European STOXX 600 was up 0.4% at 636.81 points by 0705 GMT. Most major bourses rose, with Germany’s DAX up 0.4%.
Attention is on the Fed’s decision later in the day, with markets pricing in a 93% chance of a 25-basis-point interest rate hike, according to the CME’s FedWatch tool. Rising inflation stemming from the Iran conflict have prompted markets to reassess their rate expectations.
On Wednesday, oil prices took a breather, down 0.6%. Stocks most hit by rising crude rebounded, with banks among the biggest gainers. Barclays and Standard Chartered were up 1.4% and 1.7%, respectively.
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These stocks had dragged the benchmark STOXX 600 to a three-month low on Tuesday.
Among individual stocks, Babcock International retained its annual forecast. Shares of the British defence and engineering group were up 2.5%.
Barratt Redrow trimmed its home completions target for fiscal 2027, citing planning delays and fewer sales outlet openings. Still, its shares rose 5.1%.
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(Reporting by Sudeshna Ghoshal in Bengaluru; Editing by Sonia Cheema)
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